Office of House Bill AnalysisH.B. 1503
By: McCall
Pensions & Investments
Committee Report (Amended)


Public pension systems in Texas involve billions of dollars and the
financial welfare of thousands of citizens. Upon consideration of the
state's vested interest in the successful performance of these funds, the
Sunset Advisory Commission (commission) has advised that the state needs
the State Pension Review Board (board) as an early warning system to detect
and bring to light problems within the pension systems before they become
critical.  The board is also needed as a neutral and knowledgeable third
party to advise the legislature on proposed and often complex legislation
affecting the state's pensions systems.  To accomplish these goals, the
commission has provided recommendations for the improvement of the board.
The board is set to be abolished September 1, 2001 unless continued by the
legislature.  House Bill 1503 provides for the continuance of the board and
implements the recommendations provided by the commission.   


It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the State Pension Review Board in
SECTION 10 (Section 801.201, Government Code) of this bill. 


House Bill 1503 amends the Government Code to continue the State Pension
Review Board (board) until September 1, 2013, and to set forth standard
Sunset Advisory Commission recommendations regarding equal opportunity
representation for the board, grounds for removal from the board, board
member training, presiding officer designation, policy implementation for
the board, equal employment opportunity policy, standards of conduct, and
the written complaint process.   

The bill requires the board, by rule, to adopt a brief standard form that
will assist the board in efficiently determining the actuarial soundness
and current financial condition of a public retirement system, and to
require that a retirement system submitting information required for review
or study include the form with submission.   


September 1, 2001.


Committee Amendment No. 1 removes the provision which prohibited the
governing board of any public retirement system from making a contribution
to the State Pension Review Board.